Climate-related risks are integrated into two steps of our ESG In Action programme. First, the ESG due diligence, executed by a verified third party, aims to identify and evaluate liabilities and opportunities that are also related to climate. Examples are non-conformity of machinery, disruption to production due to extreme weather events, and resiliency of energy sources. The ESG due diligence is executed before committing to the investment. Second, portfolio company management and all relevant stakeholders perform a Risk Materiality analysis. This step is related to the identification and prioritization of all ESG business related risks, in order to mitigate or eliminate them through the ESG Action Plan.
In addition, starting in 2019, we perform a carbon footprint analysis and management of all new companies acquired by Ambienta III fund. The analysis is performed after acquisition and its outcomes are integrated into the decision-making process of the Risk Materiality.